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Budget 2024 | The Government has announced proposed changes to personal income tax, the independent earner tax credit, in-work tax credit, the minimum family tax credit and the interest rate charged for overseas based student loans. They have also provided more information on FamilyBoost. Find out more: www.budget.govt.nz

This appropriation is limited to the provision of advice, including second opinion advice and contributions to policy advice led by other agencies, to support decision-making by Ministers on Government policy matters.

We achieved 2 out of 2 output performance measures.

We provide advice to Ministers on tax and social policy matters to help them make policy decisions. Our advice aims to protect and maintain the integrity of the tax system, keep the tax and social policy system as simple as possible and ensure we stay internationally competitive.

When possible, we use the Generic Tax Policy Process (GTTP) to develop better, more effective tax policies by considering key elements and trade-offs at an early stage. There are opportunities for the public to comment on proposed policies at several points during the process.

We implement the Government's Tax and Social Policy Work Programme (TSPWP), which is based on the Government's revenue and economic strategies.

Our role includes:

  • advising on tax and social policy measures
  • developing tax and social policies
  • drafting tax legislation and helping to get it passed
  • negotiating and maintaining double tax agreements with other countries
  • forecasting revenue and disbursements for the Government
  • analysing the revenue implications of policy changes on revenue.

This year, we finalised policies on increased reporting obligations for domestic trusts and rules on interest deductions for rental properties. Together, these policies will affect around 35,000 customers. We worked on international tax issues such as the OECD's solution for taxing the digital economy. We also worked with other government agencies to review Working for Families.

We engaged on high-profile matters such as the housing changes, cross-border workers, taxing the gig and sharing economy and tax administration in a digital world. Consulting with the public on the housing changes attracted around 500 submissions. This input was crucial for designing and refining the rules to make the changes work in practice.

Between March and June 2022, we provided policy and operational advice to Ministers on designing a cash payment for low-to-middle-income New Zealanders. This Cost of Living Payment was announced as part of Budget 2022. The purpose of the payment is to help eligible people with the recent increase in the cost of living, and it required a quick and simple process for payment. A payment mechanism was designed for implementation in time for the first payment on 1 August 2022.

Every year, the Minister of Revenue introduces a taxation bill that proposes changes to annual tax rates and other related changes. This year, the Taxation (Annual Rates for 2021-22, GST, and Remedial Matters) Bill enacted in March 2022 contained over 100 changes. Most changes related to property and trusts. You can read more about the GTPP, TSPWP and our public consultations on our Tax Policy website.

Tax Policy

An independent panel assessed the quality of the policy advice papers we'd written for ministers this year. They found that all the papers were 'acceptable' or better. This compares well with 2020-21, where 90% of our papers were 'acceptable' or better.

Policy 'agility' is a key aspect of the effectiveness of our policy advice - it was one of the main reasons Ministers invested in our transformation programme. Read more about how we've demonstrated our policy agility in a case study on the quick delivery of COVID-19 support payment schemes.

Robust flexible technology environment

This year, we achieved both performance measures in the Policy advice appropriation, which is the same as in 2020–21.

Scale for scoring the quality of policy advice

  1. Unacceptable - Does not meet the relevant quality standards in fundamental ways. 
  2. Poor - Does not meet the relevant quality standards in material ways. 
  3. Acceptable - Meets the relevant quality standards overall, but with some shortfalls. 
  4. Good - Meets all the relevant quality standards. 
  5. Outstanding - Meets all the relevant quality standards and adds something extra
Performance measures and if they were acheived.
2020-21 actual Output performance measure 2021-22 target 2021-22 actual 2022-23 target
90% Average score of papers assessed using the Policy Quality Framework 3.5 or more out of 5 3.5 (acheived) 3.5 or more out of 5
95% The Minister's satisfaction with the policy advice services received 4 or more out of 5 5[1] (achieved) 4 or more out of 5

1 Result based on a response from the Parliamentary Under-Secretary for Revenue.

All targets are unaudited.

Output statement for the year ended 30 June 2022.
Actual 2021 ($000)   Actual 2022 ($000) Unaudited revised budget 2022 ($000) Unaudited budget 2022 ($000) Unaudited forecast[2] 2023 ($000)
Revenue
$11,498 Revenue from the Crown $14,419 $14,419 $11,499 n/a
n/a Other revenue $7 $1 $1 n/a
$11,498 Total revenue $14,426 $14,420 $11,500 n/a
$11,173 Total expenses $13,114 $14,420 $11,500 n/a
$325 Net surplus or (deficit) $1,312 n/a n/a n/a

2 Due to the cessation of the 'Policy advice' appropriation as at 30 June 2022, and the transfer of funds to the new Policy advice category in the 'Services for customers multi-category appropriation', the amount for Unaudited forecast is nil.

Last updated: 22 Sep 2022
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